Business, general

AT&T Wireless unit to offer free Web access

Article Abstract:

AT&T Wireless will include free Internet access as part of the flat rate plan that is offered to digital cell-phone customers. The service, called PocketNet, will seek to replicate the success of the AT&T's Digital One Rate plan for mobile telephone service. The move by AT&T is seen as a challenge to Sprint Corp. dominance in the consumer wireless data market.

Prices and rates, Internet service providers, Internet service provider

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Wireless Web's vast promises still unkept in U.S

Article Abstract:

It's a reflection on the industry that only 2% of AT&T Wireless Group's customers actually access the Web by way of their phones. Keyboards and screens are awkward, downloading is slow and U.S. wireless networks are often incompatible. Wireless companies know how important it is to be the one to make a consumer-friendly Web phone and many are pursuing voice recognition applications. "Location-based" services are also to be marketed.

Microsoft Corp. will invest $600 million in Nextel Communications Inc. as it continues its strategy of taking the lead in providing World Wide Web services to wireless customers. Last week, the software firm agreed to invest $5 billion in AT&T Corp. in exchange for the phone company's agreement to use Microsoft's Windows CE software in cable-television set-top boxes. Microsoft is competing with America Online Inc. and others to deliver Web services through new devices, such as handheld computers and cellular phones. Nextel will end its February agreement to provide the same services from AOL's Netscape Communications unit in favor of those developed by Microsoft Network, or MSN. Nextel will be Microsoft's first customer for MSN's new 'wireless portal,' which will be introduced later this year. Microsoft believes Nextel's three million customers, mostly business customers who pay high monthly bills, will be willing to use Internet-ready phones. Microsoft agreed to buy 16.67 million shares for $36 each, below Nextel's closing price, and well below the amount offered by MCI WorldCom Inc. during merger talks that were recently broken off. Microsoft competitors responded to the news by calling for a limit to the firm's investments or acquisitions in light of the government's current antitrust trial.